Suppose Payments Were Made at the End of Each Quarter

question 176

Short Answer

Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at the rate of 8%/year compounded quarterly. If the future value of the annuity after 7 years is $70,000, what was the size of each payment? Round your answer to the nearest cent.
R = $__________

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.